Bad times for Bitcoin scammers. US authorities have struck another blow against crypto thieves.
The question of what Bitcoin actually is is not easy to answer at the moment. In order to establish itself as a crisis currency and safe haven asset, the ecosystem obviously still needs to mature. However, Bitcoin is still in the running as a digital value store whose supply is deflationary in nature. One thing is certain: The Bitcoin narrative changes over time.
One narrative, as it gradually becomes clear, is slowly coming to an end: that of the shadow currency. Most criminals are beginning to realize that Bitcoin is not suitable for laundering money or trading in illegal goods. The authorities have long since opened up, and fraud with Bitcoin is no longer worthwhile.
US authorities catch Bitcoin fraudsters
This was last seen on 17 March. Because the Department of Justice of the US state of Oregon announced the conviction of two Bitcoin fraudsters. According to the authorities, they had conspired to commit Internet fraud and money laundering in order to gain access to Bitcoin's fraudulent system. According to the indictment, they used their Twitter account to pretend to users that they were dealing with representatives of the Bitcoin exchange HitBTC.
As alleged customer advisors, they tricked their victim into revealing access data. They then used these to empty their victim's account and extended their action to the Crypto-Exchange Kraken. In total, the two Canadians captured 23.3 Bitcoins. However, they obviously did not do a particularly clever job. So they transferred the booty to their own Kraken accounts.
Afterwards they squandered their loot by one of them buying a Mercedes Benz for 56,598 Canadian dollars and by visiting casinos together. Afterwards one of them was arrested at McCarran International Airport in Las Vegas, the other one turned himself in voluntarily. Both pleaded guilty and began to pay compensation to their victim.
Law enforcement is catching up fast
What the two perpetrators obviously completely misjudged is the supposed anonymity of the crypto currency. The two Bitcoin fraudsters seemed to have overlooked the fact that transactions are traceable for authorities due to the transparency of the block chain.
Something similar happened last year. In October 2019, international investigators succeeded in breaking the largest child pornography ring to date. The perpetrators had used Bitcoin to finance their machinations, which eventually became their undoing.
